AB InBev to reduce carbon emissions in logistics by 15%

GLOBAL - Anheuser-Busch InBev aims to reduce carbon emissions in its global logistics operations by 15% by the end of 2017.

In support of the new global environmental goal, the Belgium brewery says it will implement a variety of innovative measures and expand proven best practices across its global operations. AB InBev estimates that collective logistics improvements could result in up to US$200 million in savings by the end of 2017.

This new target adds to AB InBev’s existing global environmental goals covering water use and agricultural development; energy and greenhouse gas emissions; and materials and recycling. One of its goals is to reduce its packaging material usage by 100,000 tons. As of end-2013, the brewer had already achieved a reduction of 48,000 tons, almost halfway to its goal.

“Aspiring to be the brewing industry leader in sustainable logistics helps advance our dream to be the Best Beer Company Bringing People Together For a Better World,” said Carlos Brito, CEO of AB InBev. “This new goal builds on our strategy to look beyond our brewery walls as we continue to drive reductions in the impact of our supply chain and pursue partnerships to improve performance globally.”

Human activity generates greenhouse gas emissions of around 50,000 mega-tons of carbon per year, and about 5.5% of that – an estimated 2,800 mega-tons – is contributed by the logistics and transport sector, according to the World Economic Forum report on Supply Chain Decarbonization.

The new global goal to reduce the carbon emissions in the company’s logistics operations includes inbound transportation, outbound transportation and warehousing. In terms of outbound transportation, the reduction represents about 230,000 tons of carbon emissions in total. This is equivalent to the annual energy needed to power almost 21,000 homes in the U.S.2. The goal is measured against a 2013 baseline.

A series of new initiatives aims to reduce transportation- and logistics-related energy consumption. This includes the use of alternative fuels, smart driving tools and trucks designed to maximize efficiency.